NYRA ready for 'shots' in audit

Published 1:00 am, Monday, July 12, 2010

New York Racing Association is bracing for a new comptroller's audit on its operations which will question, among other things, a $125,000- per-month contract NYRA has with its integrity counsel.

The audit is to be released this morning by Comptroller Thomas DiNapoli, just before the opening of the Saratoga meet. NYRA President Charles Hayward, noting the timing, said he was aware that this is a "political season."

"I think they're going to take some shots at us," he said, urging a reporter to read more than the news release DiNapoli will put out. Hayward, and NYRA Counsel Patrick Kehoe, declined to reveal details of the audit, although they reviewed it and gave auditors a written response. Kehoe called the audit "very fair" and said it isn't critical as past comptroller's audits. However, he suggested that the comptroller needs to remember NYRA is a not-for-profit, private entity: "We're running a business, not a state agency."

The auditors took a close look at the $1.5 million per year contract NYRA has had with Getnick & Getnick, the former NYRA court-appointed monitor turned consultant.

The audit comes two weeks after NYRA received the first installment of a $25 million loan from the state in lieu of video lottery terminal revenues NYRA has desired. Hayward said the second installment, another $8.2 million, will be sought early next month amid the Saratoga thoroughbred meet.

He said NYRA is trying to cut costs and could save $3 million by discontinuing training at Aqueduct and is examining ending the holding barn program instituted, in part, by Getnick & Getnick. But he said he doesn't plan to use any funds from the $25 million loan to mitigate the problem of horse manure flowing in Jamaica Bay. The state notified NYRA last year that the Belmont track operated by NYRA was discharging manure, wastewater and other pollutants to the bay via the Nassau County storm drain system and NYRA faced hundreds of thousands of dollars in fines. Kehoe said the state won't be fining NYRA. Hayward said he has discussed with the Paterson administration that the New York City OTB, now a state authority, is shorting it by $1.7 million a month and owes it more than $17 million. He suggested that NYRA wasn't going to fix Belmont's pollution problem as long as NYRA remained such a creditor of the OTB. Maureen Wren, a state spokeswoman, said the state won't discuss negotiations.

Donohue staying at CSEA

Civil Service Employees Association President Danny Donohue's bid for national office with AFSCME came close, but he was a little short of becoming the secretary-treasurer, losing 652,660 to 648,356 to the Lee Saunders, who has been the executive assistant to International President Gerald W. McEntee and who was endorsed by McEntee. Donohue friends say he was buoyed by the strong showing and will likely seek re-election so that he holds an office to run from should another vacancy open at AFSCME.

Donohue would not provide an interview, but he told his supporters that despite their doubts about the "conduct" of the AFSCME election he would not contest the loss.

Reach James M. Odato at 454-5083 or by e-mail at jodato@timesunion.com